Filing and Paying
Ideally, the amount of taxes withheld from each paycheck should equal the amount of taxes you owe, but the withholding amount is just your best estimate. When you file your taxes annually every April, you are reconciling what you’ve paid during the past calendar year and what you truly owe after factoring in deductions, exemptions, and credits. If you have paid too little withholding, you will owe tax. On the other hand, if you have paid too much, you will get a refund.
To file your federal and Vermont personal income taxes, you will need the information on Form W-2, Wage and Tax Statement, from each employer and Form 1099 for any other source of income, such as interest, dividends, prizes, etc. Federal and Vermont laws require employers, financial institutions, and others to distribute forms W-2 and 1099 to taxpayers by January 31 of the filing year. They also must send them to the IRS and Vermont Department of Taxes.
You must file your federal Form 1040, U.S. Individual Income Tax Return, and your state Form IN-111, Vermont Income Tax Return, along with any necessary schedules, by the April 15 due date. If the 15th falls on a weekend or holiday, it moves to the next weekday.
Need More Time to File? If you need more time, you may file to extend your due date to October 15 using federal Form 4868 and Vermont Form IN-151. You may also file a Vermont extension online at myVTax.vermont.gov. You must file federal and Vermont extension forms by the April due date. If you estimate that you owe tax, you must still pay the tax with your extension to avoid additional penalty and interest.
Vermont’s Tax Credits and Exemptions
Federal and state lawmakers create tax credits and exemptions to allow qualified taxpayers to reduce their tax liabilities. Credits and adjustments serve various purposes, such as to help low-income taxpayers reduce their tax burdens or to provide incentives to support business growth and other activities.
Some credits, such as the Earned Income Tax Credit, may be taken at federal and Vermont levels. Check the Department’s website
to see if you are eligible for such Vermont credits and exemptions as the Property Tax Credit, Social Security Exemption, Charitable Contribution Tax Credit, and Research and Development Tax Credit.
Need More Resources?
Make sure to visit the other sections dealing with taxes: